Edisun Power Europe AG: Record profit with positive outlook

Ad hoc announcement pursuant to Art. 53 LR

Zurich, August 26, 2022
 

Record profit with positive outlook

• Revenue growth of 8% to CHF 9.23 million (+14.7% in local currency)
• Net profit increase to CHF 6.19 million (+144.3%)
• High unrealized currency gains on euro-denominated loans
• New bond with 3% interest as of 1 December 2022

The sales revenue and in particular net profit of the Edisun Power Group were increased significantly in the first half of the year. The strong performance is largely attributable to improved income from electricity sales as well as productivity and currency gains. Edisun Power is working actively with its strategic partner on the further development of the purchased solar project rights totaling 940 MW. A further plant with 23.4 MW will be connected to the grid in October.
 

Good weather conditions and higher electricity prices

Revenues rose 8% year on year to CHF 9.23 million (H1 2021: CHF 8.55 million) and by 14.7% in local currency. At 64'177 MWh, a total of 12% more solar power was produced than in the prior-year period. This is equivalent to the average electricity consumption of more than 41'000 four-person households in Switzerland. Thanks to the improved weather conditions, the plants in Portugal, Germany and Switzerland produced between 9.7% and 18.8% more solar power than was the case a year ago, which was reflected in a revenue increase of CHF 0.41 million. The state guaranteed income in Spain and Italy is partly dependent on the market price. The sharp rise in electricity prices compared with the prior-year period had a correspondingly positive impact on these plants despite a partial transfer of profits obligation in Italy. Net revenue rose here by CHF 0.42 million. However, revenue in France fell by CHF 0.15 million due to technical failures and maintenance work.

Significant increase in profitability with new record profit

Edisun Power retains an extremely lean structure and has appointed Smartenergy for product development, construction support, asset management of the plants commissioned and other services. The solar plants are continuously monitored from Wollerau and Porto in order to maximize the production of solar power. The operating costs rose by just CHF 0.29 million or 14% year on year despite higher administration costs due to the purchase last year of a large project portfolio of 783.6 MW. Earnings before interest, taxes, depreciation and amortization (EBITDA) therefore improved by 6% to CHF 6.92 million (H1 2021: CHF 6.53 million), primarily as a result of the higher income from electricity sales. The EBITDA margin reached 75.0% (H1 2021: 76.4%) and is well above the medium-term target of 70%.

The plants in Switzerland, France and Portugal all have an EBITDA margin above 85%. The Mogadouro plant (49 MW), which does not benefit from subsidized feed-in tariffs like the other 37 plants, achieved an EBITDA margin of 87.2% thanks to its size and enhanced production and generated around 22% of total revenue.

Net profit rose to a new record level. At CHF 6.19 million and a margin of 67.1%, the previous years result of CHF 2.53 million (29.6% net profit margin) was greatly surpassed. Earnings per share grew by 144.3% to CHF 5.98 (H1 2021: CHF 2.45). The key contributors to this were the low interest costs of CHF 1.9 million despite high loan portfolios averaging CHF 275 million, and unrealized foreign currency gains on loans payable in euros owing to the strong Swiss franc. The interest-free loan granted by Smartenergy to Edisun Power for the project rights of 703 MW purchased at the end of 2021 accordingly decreased by CHF 4.7 million.

Strong operating cash flow, doubling of investments and stable balance sheet

Cash flow from operating activities increased by 67.2% to CHF 7.1 million thanks to higher income. Year-on-year investments more than doubled to CHF 22.6 million (H1 2021: CHF 10.3 million). Edisun Power is thus continuing its announced growth strategy at brisk speed. The equity ratio fell slightly to 19.6% (end of 2021: 19.8%). A favorable impact is the fact that no interest burden is being incurred for the outstanding payments of CHF 126 million for the purchased project rights from Smartenergy. The objective remains to increase the equity ratio back above 40% again in the medium term. This is primarily to be achieved through the proactive management of the project portfolio as announced. An approved capital increase can be carried out as an additional option.

Outlook for the current year

Operationally the second half of the year has started on a very promising note thanks once again to excellent weather conditions and ongoing high electricity prices. The 23.4 MW Betty plant near the Mogadouro plant is to be connected to the grid in October. The solar modules are already installed. As announced on 4 July, alongside the construction and operation of solar plants, the Board of Directors is also focusing on the inflow of funds from the sale of some project rights, which in the current market environment remains attractive due to the energy policy situation in Europe. The inflow of funds is to be used to accelerate the construction of 300-350 MW as a medium-term objective, thereby quadrupling the current portfolio of operational solar plants.

Issue of a new bond

The Board of Directors has decided to issue a new five-year 3% bond for CHF 20 million (option to increase) with a term from December 1, 2022 until November 30, 2027 to replace the 2% 2017-2022 bond for CHF 13.315 million due to expire on November 30, 2022 and finance the ongoing projects. The closing of the subscription is November 15, 2022.

The semi-annual report 2022 of the Edisun Power Group is available on the website at:

https://www.edisunpower.com/en/home-en/investors-en/reporting
 

Key figures of the Edisun Power Group

For more information

Dr. René Cotting, +41 44 266 61 20, info@edisunpower.com

Edisun Power Group

A listed European solar energy producer, the Edisun Power Group finances and operates solar power installations in a number of European countries. Edisun Power began its involvement in this sector as far back as 1997. The company has been listed on the Swiss Stock Exchange since September 2008. Edisun Power has amassed extensive experience in the realization and acquisition of both national and international projects. Currently, the company owns a total of 38 solar energy installations in Switzerland, Germany, Spain, France, Italy and Portugal. The company is geared for significant growth with a secured portfolio of projects under development of c. 940 MW.